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3 Crucial Factors For Lightinthebox Investors

2.
1. Different Companies, Different Products
Vipshop focuses
exclusively on daily
“flash sales” of 30%
to 70% off name-
brand products.
Dangdang gets 67%
of revenue from
electronic media,
the rest from
merchandise.

3.
1. Different Companies, Different Products
• Lightinthebox obtained 29% of its revenue from
apparel sales in 2013.
• The other 71% came from electronics and other
general merchandise.

4.
2. Where Business Gets Done
Both Dangdang
and Vipshop
conduct
“substantially all”
of their business
with Chinese
consumers.
All About China

5.
2. Where Business Gets Done
While headquartered in China, Lightinthebox does its
business with global customers.
– Europe accounted for 62% of all revenue.
– North America clocked in with 19% of revenue.
– South America provided 9% of revenue.
– All other countries came in with 10% of revenue.

6.
3. Business Momentum
But the most important difference
between Lightinthebox and the others:
Its growth is slowing down
in a major way.

11.
Before Investing in Lightinthebox…
You need to carefully consider three things:
1. Remember that the company’s business model
is fundamentally different than Dangdang’s and
Vipshop’s.
2. Almost all of its customers reside outside China.
3. Revenue growth has come to a standstill, with
only a 27% jump, while operating expenses
have increased 47% over the past 12 months.

12.
There are better ways to profit from China.
• We quickly forget that American companies have a strong presence
in China.
• Apple is one of those companies.
• Click on our special free report to find out what Apple’s next product
might be.